Even a dismal economy didn’t prevent rich lawmakers on Capitol Hill from becoming richer. Congressional members’ personal wealth collectively increased by more than 16 percent between 2008 and 2009, according to a new study by the Center for Responsive Politics, a DC-based non-partisan think tank.
The study, based on required financial disclosures earlier this year, found that nearly half of all 535 members of Congress are millionaires, a small increase from the previous year. In comparison, about 1 percent of Americans have millionaire status.
Of these congressional millionaires, 55 had an average wealth in 2009 of $10 million or more, with eight in the $100 million-plus range, generally excluding their homes. The base pay for member salaries is $174,000 and has been frozen at that level since 2009.
“A lot of these folks have been wealthy for a while … they are good with money,” said Dave Levinthal, co-author of the report. “This is a very elite group of people,” Levinthal added. “You have people who know how to make money and retain wealth.” Levinthal said many of the members are active investors who may trade more than the average American.
Who made the top of the list? Rep. Darrell Issa (R-Calif.). His 2009 holdings exceeded $303 million, a 21 percent increase from the previous year. This isn’t the first time Issa has been on top. He has held the first or second place spot over the last five years.
In second place was Rep. Jane Harman, (D-Calif.), with $293.4 million. In third place was Senator John Kerry (D-Mass.), with $238.8 million.
Earlier this year, The Hill newspaper issued its own annual "wealthiest" lawmakers list. It said the 50 richest members of Congress were worth nearly $1.4 billion last year — $85.1 million more than the holdings of that elite group a year earlier. Kerry topped this list for the second year in a row.
The CRP report also found that wealth increases for members of the Senate were considerably larger and more significant than their counterparts in the House. In 2009, the median wealth of a House member was $765,010, up from $645,503 in 2008. The median wealth of a Senator was nearly $2.38 million, up from $2.27 million in 2008.
For all members of Congress, regardless of chamber, median wealth in 2009 was $911,510, up from $785,515 in 2008. This spike in personal wealth represents a rebound from the period between 2007 and 2008, when overall congressional wealth dropped by more than 5 percent.
Taxpayer advocacy groups like the National Taxpayers Union have been pressuring the new Republican leadership to cut lawmaker salaries. “The time has come for Congress to consider a reduction,” said Pete Sepp, vice president with the National Taxpayers Union, a conservative group. If this is an economic watershed, there is one way to help make history right — share in the sacrifice millions of other Americans have felt.”
While there has been no official commitment to slash salaries, one of the promises from Republican leaders in September’s “Pledge to America” is to reduce Congress’ budget and expenditure. “It would be a more visible illustration of Congress’ intent to take a direct cut to their own wallets,” Sepp said.
